First-Time Real Estate Investment Strategy

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Realty Times - Basic Tips for First-time Buyers

Realty Times - Basic Tips for First-time Buyers

Realty Times - All About FHA Loans

Realty Times - All About FHA Loans

Realty Times - Habitat For Humanity

Realty Times - Habitat For Humanity

Second Home Ownership: Could It Be For You?

By Ruben Gonzalez

Prudential California Realty (DBA)

Hollywood stars are not the only ones with homes in both California and New York. Farmers escape the Heartland for the sandy Floridian shores, too. Second home ownership has become an extremely popular trend in today’s real estate market. Why? Because demographics and technology are converging to create a historic opportunity for buyers and sellers. As Baby Boomers rush toward retirement, second homes suitable for play now and retirement later have enormous appeal.

Today, thanks to technology, second homes are becoming a place to work as well as play. Second homes may be located in resort areas. Others may be located near a second work environment for those who commute frequently between different business destinations. And the second home phenomenon stretches from Alaska to Florida, from Hawaii to Nova Scotia, and all points in-between.

How you use a second home is up to you, but if it’s something you’ve been considering, now is the time to get the information you need to make an informed decision. A qualified real estate professional can help guide you through financial considerations, assist you in finding the right community and even refer you to a resort property specialist for the destination of your dreams. Your real estate professional may be able to get you the information and advice you need to use the equity in your current home to finance the down payment on a second home, for example.

For many, a second home in a vacation or resort area can be an income property when not in use. Once again, a real estate professional will help you consider property management options that can be a crucial financial factor as well as important to peace-of-mind.

Married couples, generally over age 35, with or without children are almost twice as likely to own second homes as single persons. And the fastest growing segment of second home buyers are age 35 to 54, without children at home.

Some of the best locations are not more than two to three hours away from major metropolitan areas by car or plane. For example, Bostonians gravitate to Cape Cod. San Franciscans retreat to Lake Tahoe and Angelenos head for Palm Springs. Many people who live in the West also have second homes there. Yet, the biggest feeder market for second homes in the South are buyers from the Northeast.

What makes a second home location ideal? Natural beauty is great, but don’t forget about cultural and social resources, as well as first-rate golf, tennis and other popular sports facilities.

Second homes are a discretionary purchase, and everyone wants to feel secure in their environment. That’s why gated and guarded residential communities will continue to increase. And locations such as Sante Fe, New Mexico, and Coeur d’Alene, Idaho, which are removed from most urban problems, continue to be attractive.

Nevertheless, you will likely get more enjoyment out of a property you can get to quickly and can use frequently. Since you know this area, chances are you’ll make a better real estate investment closer to home. And be sure to look at each property with an eye toward tomorrow, because the vacation homes likely to appreciate the most are the ones that Boomers can play in today and retire in tomorrow.

Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.

There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

New research from the National Association of Realtors (NAR) shows vacation-home sales in the US rose 7.9% to 553,000 in 2009. Although well off the market peak of 1,067,000 sales in 2006, this represents the first time in three years the US vacation-home market has seen a lift.

Although the median sales price for vacation homes has increased to $169,000, up from $150,000 in 2008, this “may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year”, according to NAR chief economist Lawrence Yun.

Ruben Gonzalez can be reached at (562) 507-0754 or E-mail. 

Prudential (dba) is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity. (Note: Have the newspaper to insert the Equal Housing Opportunity logo here)

Costs for First-Time Buyers

By: Ruben Gonzalez Jr.

Prudential California Realty (DBA)

Buying a new home can be a huge, complex undertaking, especially when it’s your first time. That’s why it’s important to have an experienced real estate agent guiding you along the way.

In a survey conducted earlier this year by Prudential Real Estate and Relocation Services (PRERS), a Prudential Financial, Inc. [NYSE:PRU] company, 75% of respondents highlighted the importance of real estate agents in the process of buying or selling their home, with only 24% saying agents are helpful but not imperative.

“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes,” said James Mallozzi, PRERS’ chairman and chief executive officer. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”

First-time buyers need to look at their financial situation and crunch the numbers to see if this is the right time to buy. Chances are the numbers they see today will be the best they will see for some time, which is why so many are considering homeownership.

Still, understanding the money that goes into a home purchase is important. The biggest mistake new buyers make is underestimating the costs of buying a house and maintaining it over time.

Homebuying requires more than a down payment as closing costs and future expenses will figure prominently. Many experts agree that homeowners should have 1%-3% of their homes’ purchase price in savings for improvements and surprise expenses. Mortgage experts also say it’s wise to have at least six mortgage payments in the bank after a closing.

While those numbers may not be feasible for everyone, if you are spending above your means on a new home, you may find yourself in financial trouble fast.

Inspections are important for the first-time buyer, as they list repairs that will be needed for the home. A buyer should put together a short-term and long-term plan based on the inspection so they know how much money they will need in the months and years ahead.

As renters, people are accustomed to paying rent and basic utilities. As homeowners, you’ll also pay for water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and homeowner’s association dues, plus yard care, snow removal and other expenses unique to your location.

To be sure, buying a home is one of the largest investments you’ll make and when done wisely, it can be one of the best decisions of your life. Your real estate agent will help each step of the way, first helping you establish a realistic price point for your home purchase and a clear understanding of your monthly expenses.

Ruben Gonzalez can be reached at (562) 507-0754 or E-mail

 Prudential (dba) is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Down Payment Tips

 

By: Ruben Gonzalez Jr.
Prudential California Realty (DBA)


Many people dream of owning a home but don't think it's possible because they lack the resources for a down payment and closing costs. Here are tips for securing that down payment.


1) Borrow from your retirement account: Many people have been investing in a 401(k) plan or traditional IRA for years and first-time homebuyers may borrow up to $10,000 for their down payment without incurring a penalty. For those self-employed or if your employer allows it, you also can borrow up to $50,000 from your current 401(k) and pay yourself back over five years at a low interest rate.


2) Ask family: Sure, you may be too proud to ask for money, but if relatives can help you and your family move into that dream home, isn’t it worth it? If you do get help from a family member, the lender will ask you to sign a gift-letter form, attesting to the relationship. The lender may also require your relatives to explain where they got the money and prove that they are financially able to make such a gift.


3) Look for down payment assistance grants: Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to own a home.


4) Come to a lease/purchase agreement: Homeowners who can’t sell their homes in this market may consider a lease/purchase agreement, where you rent the home you want to buy and a percentage of your rent is applied toward the down payment. If you go this route, make sure you get a contract outlining all the details so both parties are protected.


5) Add it to the wedding registry: Several mortgage companies allow those getting married to set up a down payment registry. This is a great way to celebrate the joining of two people in matrimony.


6) Cut back and save: If none of the other ways will work for you, there’s always the old fashioned “saving for a rainy day.” Try putting aside 10% of each paycheck and make your meals instead of going out for them. If you’re married, save the money you would spend on birthday, anniversary and Christmas presents and put it toward your house. You also may need to forget that vacation this year.


These sacrifices may seem significant but they will be worth it once you’re inside your own home.

Ruben Gonzalez Jr. can be reached at (562) 507-0754 or E-mail.

Prudential California Realty (dba) is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

Realty Times - The American Dream is Alive, In Spirit

Realty Times - The American Dream is Alive, In Spirit

Realty Times - Financial To Do List

Realty Times - Financial To Do List

Realty Times - How Much Down Payment Is Enough to Buy A Home?

Realty Times - How Much Down Payment Is Enough to Buy A Home?

Why Buy a Home in Today's Market?

Buying a home in today’s market may be challenging, particularly for those with credit problems or little saved to put toward a down payment. But there are many factors impacting the current housing market that make buying a home today a viable option.

Here are five reasons for buying a home today:

1 Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The rate on a 30-year, fixed mortgage is hovering just below 6 percent, while, by comparison, interest rates were hitting 8 percent and higher during the last market downturn in the late 1990s, and were between 10 and 12 percent at the height of the last housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your monthly payments are more affordable.

2 No one can put a price on the intrinsic value of homeownership. Home prices also reflect financial worth and, the good news is, across California the median sales price for a single-family home has been consistently rising for several decades. In short, housing remains a solid, long-term financial investment. While the pace of home appreciation has slowed over the last year, historical data suggest home prices will continue to appreciate over time. The projected median home price for a single-family home in California in 2008, for example, is $553,000. By comparison, the median price in 2000 was $241,350; $193,770 in 1990, and $99,550 in 1980. (source: C.A.R.)

3 The length of time a home remains on the market before it is sold has increased from
roughly two weeks in 2004 to between eight and nine weeks in 2007. According to the
unsold inventory index provided by the CALIFORNIA ASSOCIATION OF REALTORS®, it would take 16.3 months to sell all the homes on the market at the current sales pace, compared with 6.4 months in 2006. With more homes on the market for longer periods of time, you have more choices when it comes to selecting a home today.

4 The multiple-offer frenzy that dominated the latest housing boom has subsided, and there is
less pressure on today’s home buyers to outbid one another. REALTORS® in California reported that in 2007 only 28 percent of homes sold had multiple offers, compared with 57 percent in 2004. (source: C.A.R.)

5 The credit industry crisis that has made securing a home loan difficult for many has led to
heightened scrutiny of mortgage lenders. As a result, state and federal agencies have created
protections for home buyers that were not in place a year ago. The U.S. Federal Reserve, for example, has proposed a plan to require lenders to confirm a borrower’s ability to afford a mortgage before making a loan and establishing guidelines for explaining subprime loan terms in order to better educate buyers. Many new public education and awareness campaigns, such as Freddie Mac’s “Don’t Borrow Trouble®” campaign, have been developed to help you achieve the dream of homeownership without the financial risks that led so many borrowers into trouble in recent years.
http://www.yourpieceofcalifornia.com/

Need I say more.... This is the time to buy folks, so let's get the ball rolling. I have just been certified as a DOWN PAYMENT ASSISTANCE SPECIALIST and know many programs that you may qualify for that work with low interest FHA loans. Interest rates ARE going up, so don't miss the boat!!!

See you around the neighborhood!